Double digit growth for SMEs
Nov 08 2006
UK small- and mid-market enterprises have the most positive growth outlook among businesses in Europe, with the financial services industry leading the pack in terms of optimism, says new research.
The study, by corporate finance outfit GE Commercial Finance (GECF), revealed that over a half of English small- and mid-market firms in financial services and nearly a third of SMEs across England as a whole, are confident that their annual sales growth over the next year will be in excess of 10 per cent.
This compares favourably with firms in Germany and France, where only 13 per cent and 15 per cent respectively expect to achieve similar growth. In addition, only one in ten English firms expect slower growth than their markets as a whole. This contrasts to 34 per cent of firms in France and 23 per cent in Germany.
John Jenkins, CEO of business finance at GECF, says: ‘In a more challenging market it is encouraging to see how many small- and mid-sized firms are really positive about their growth prospects compared with their European counterparts. This can only be good news for the UK economy.’
There are marked differences between industry sectors across England, with the relative boom in financial and professional services giving these businesses the most optimistic outlook, says the survey. Difficult conditions experienced in retail, leisure and catering mean that businesses operating in these sectors are the least optimistic about the year ahead.
London businesses have the most optimistic outlook, with 37 percent of firms predicting high growth, followed by the North East and the West Midlands. By contrast, businesses in East Anglia and the East Midlands have the most fragile confidence, the survey found.
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